The Anchoring Effect How a First Number Hijacks Your Brain

Episode 58 of Behavioral Economics with Fexingo dives into the anchoring effect — how an arbitrary first number can warp every decision that follows. Lucas and Luna use a classic 1996 study by Tversky and Kahneman where participants spun a rigged wheel of fortune, then guessed the percentage of UN countries in Africa. The spin's outcome, random as it was, predicted their guesses. We trace the effect into real-world pricing, from real estate listing prices to salary negotiations, and explore why a $150 sweater makes a $50 scarf feel like a steal. We also cover how to defend against anchors in your own spending and investing, including a 2012 study on car sales where women who saw a low initial offer paid less. Specific, actionable, and backed by data. #AnchoringEffect #BehavioralEconomics #CognitiveBias #TverskyAndKahneman #PricingPsychology #DecisionMaking #Bias #Heuristics #Negotiation #Salary #RealEstate #ConsumerBehavior #Economics #Psychology #Spending #Investing #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo